Questions and Answers Life Insurance_BetaSAM.pdf

19AL6021R0001 Questions & Answers

March 16, 2021

All Prospective Offerors

Re: Solicitation 19AL6021R0001: LES Life Insurance

In reference to this solicitation, we received many questions from prospective offerors. These questions are listed below, with responses embedded therein. We have combined some questions from perspective offerors because of their similarity. When appropriate to support our responses, we have included respective data.

Question No. 1: Could you please provide a detailed claims information for the last 3 years.

Have you had any big claims for death due to a catastrophic illness or permanent disability?

Response No. 1:

Life insurance is a new benefit; as such, the Embassy does not have a previous or current contract for coverage. From 2016 to 2020, there have been 31 cases of long-term sick leave at the Embassy. Long-term sick leave relates to an extended illness that lasts over

14 calendar days. We do not have specific information about catastrophic cases or medically sensitive information about our employees.

Question No. 2: Could you please provide a full census list with employees, date of birth and annual salaries for each employee?

We ask this because the development of life insurance rates for a group of this size requires a proper appreciation of the risk profile. We ask for salary data because the benefits are a function of the individual’s salary. It follows that our group rate would be higher if the older employees all had the higher salaries and conversely would be lower if the opposite were true. Without it, we are left with making assumptions and since your current insurer has access to this information, we would be at an unfair disadvantage unless we had it too.

Response No. 2:

Age # of

Employees

Age # of

Employees

Age # of

Employees

22 1 39 10 53 11

25 2 40 8 54 7

26 1 41 2 55 6

28 4 42 8 56 7

29 2 43 16 57 9

30 5 44 8 58 7

31 7 45 5 59 2

32 5 46 9 60 11

33 7 47 14 61 4

34 7 48 11 62 4

35 10 49 11 63 9

36 7 50 8 64 3

37 5 51 8 65 1

38 5 52 7 66 2

68 2

# of

Employees

Annual

Salary

(ALL)

# of

Employees

Annual

Salary

(ALL)

# of

Employee s

Annual

Salary

(ALL)

1 468,000 1 1,559,173 1 2,108,966

1 894,288 1 1,567,832 11 2,128,078

1 911,124 1 1,576,650 1 2,153,792

936,000

1,587,267

2,157,831

1,015,170

1 1,600,022 1 2,169,343

1,023,416

1 1,611,575 1 2,206,839

1,041,169

1 1,619,985 1 2,219,026

1,066,283

1 1,626,463 1 2,221,668

1,067,404

1 1,632,285 1 2,236,137

1,106,149

1 1,635,416 1 2,287,505

1,256,738

1 1,636,210 1 2,292,283

1,258,651

1 1,659,781 1 2,318,673

1,261,200

1 1,660,968 1 2,320,002

1,292,412

1 1,667,497 2 2,348,013

1,304,419

1 1,667,648 1 2,393,261

1,304,926

2 1,677,147 1 2,399,247

1 1,308,092 1 1,681,419 1 2,434,234

1,310,400

1 1,698,097 1 2,460,180

1,325,201

1 1,715,039 1 2,484,373

1,331,594

1 1,715,051 1 2,494,693

1,352,000

1 1,723,673 1 2,525,051

1,355,022

1 1,728,112 1 2,525,725

1,356,228

1 1,735,379 1 2,530,765

1,358,732

21 1,759,434 1 2,577,592

1,360,849

1 1,778,738 1 2,584,739

1,386,927

1 1,789,876 1 2,592,111

1,394,942

1 1,793,329 2 2,592,112

1,401,322

4 1,851,509 1 2,687,011

1,405,429

1 1,867,136 1 2,760,679

1,410,585

1 1,868,059 1 2,781,523

1,412,760

1 1,872,701 1 2,822,082

1,429,648

1 1,878,138 1 2,875,608

1,435,038

1 1,886,538 1 2,903,043

1,437,306

1 1,893,322 1 2,911,919

30 1,457,644 1 1,908,969 1 2,915,856

1,457,883

1 1,927,137 9 2,931,785

1,465,323

17 1,941,697 1 2,979,315

1 1,474,080 1 1,982,026 1 2,984,218

1 1,481,470 1 2,038,782 1 3,054,944

1 1,484,224 1 2,013,578 1 3,187,951

1 1,486,964 1 2,014,500 1 3,192,555

1 1,492,570 1 2,015,187 8 3,358,939

1,498,795

1 2,038,782 1 3,404,677

1,500,428

1 2,050,894 1 3,479,614

1,509,101

1 2,051,221 1 3,560,476

1,520,050

1 2,056,376 1 3,572,314

1,531,621

1 2,062,039 1 3,640,059

1,535,658

1 2,064,647 1 4,048,378

1,540,267

1 2,085,669 3 4,171,035

1,549,531

1 2,091,086 1 4,855,835

1 1,555,876 3 2,094,137 2 5,740,690

Question No. 3: Has there been any difference in the benefits for the last 5 years? If yes, could you please provide the current coverage?

Response No. 3: Please see Response No. 1

Question No. 4: Could you please name your current insurer?

Response No. 4: Please see Response No. 1

Question No. 5: Can we submit a proposal in USD or EUR?

Response No. 5: Please refer to SECTION M, 52.225-17 EVALUATION OF

FOREIGN CURRENCY OFFERS (FEB 2000):

Question No. 6: Please provide the loss data for the current policy year and date at which those claims were last reported, plus at least the three prior years of loss data by year of account.

All claims should be individually itemized detailing date and cause of the person’s death or disability plus the benefit paid.

Please also provide the corresponding membership history, detailing the number of employees at the beginning and end of each policy year.

Response No. 6: Please see Response No. 1

Question No. 7: Please confirm whether there have been any changes to the benefit structure (i.e. new benefits added / change in salary multiple etc.) over this period.

Claims information is critical to our pricing as we need to analyze the relationship of claims to a fluctuating group profile. Without it, we are left with making assumptions and since your current insurer has access to this information, we would be at an unfair disadvantage unless we had it too.

Response No.7: Please see Response No. 1

Question No. 8: Also, from the employee stats (Exhibit A), you imply the oldest age is 67 but what is the maximum age eligibility?

Can you elaborate on what you mean by ‘work most of the time outside’? We’ve assumed these lives work in consular services behind desks. Why would they need to be outside? What activities are they likely to be doing?

Response No.8: There is no maximum age eligibility. There are approximately 160 non-desk positions that spend most of their work hours outside the office, which include the following positions: armed and unarmed guards, Ambassador’s bodyguards, gardeners, drivers, bodyguards, alarm technicians, maintenance workers, HVAC specialists, carpenters, painters, and warehouse people.

Question No. 9: Exhibit B (Ore) & Exhibit C AERA. Could you please provide ages?

Response No.9:

ORE

Age # of

ORE

Staff

38 1

39 1

45 1

49 1

52 1

AERA

Age # of AERA

Staff

22 1

25 1

43 1

48 1

Question No. 10: We would like to ask for a clarification on the actual benefits. Our reading of it is that it is death only, but there is the occasional reference to

‘disability’. Please, confirm if disability shall also be a covered benefit.

Response No. 10:

Accidental death and work-related death/disability is covered under C.2.1.2. There is no coverage for partial or total disability outside of work-related accident. Per C.3.0

Definitions, “Disability - Total and Permanent” is defined as physical or mental impairment which precludes the individual from performing ordinary motor or bodily functions and which requires separation from employment. If the impairment is the result of a previous impairment, it shall be considered a continuation of the prior impairment.

Question No. 11: Please provide detailed data on the Insured Amounts for each employee as per excel spreadsheet attached (Details on the basic annual salaries).

In case it is not allowed to provide the detailed information for any one of the employees, kindly provide detailed information for the age, gender and annual salary for the employees with an annual salary above 25,000 USD.

Response No. 11: Please see Response No. 2.

Question No. 12: During the last 3 years what is the number of employees, from the group to be insured, that have been hospitalized, as a result of sickness or accident? Please specify the cause of hospitalization for each case.

Response No. 12: Please see Response No. 1

Question No. 13: Is any of the employees of diagnosed in the last 5 years with one of the serious following disease, and please specify the type of illness?

Disease Number of employees:

Cancer

Benign brain tumor

Aortic aneurism

Stroke

Myocardial infarction

Heart rhythm disorders

Heart valves insufficiency coronary bypass

Renal insufficiency

Transplant of main organs

Sclerosis multiple

Paralysis

Blindness

Response No. 13: Please see Response No. 1

Question No. 14: Please provide data on the employees who currently have one of the following diagnosis:

Diagnosis

Please specify the disease, age of the person and when was it diagnosed, current treatment and medication, ( for example: 45 years old, rheumatoid arthritis, diagnosed at age 35)

Hypertension (primary or secondary)

Cardiac Illnesses (for example:

Arrhythmia, Valvular heart diseases, endocarditis, etc.)

Coronary artery disease ( for example:

myocardial infarction, coronary bypass, etc.)

Dyslipidemia (Hypercholesterolemia, Hypertriglyceridemia.

Diabetes Type 1

Diabetes Type 2

Thyroid Diseases (for example: nodus, Auto-immune, Goitre, hypothyroidism, hyperthyroidism, thyroiditis, etc.)

Benign Breast Tumors (cysts, adenoma, fibroma, lypoma)

Response No. 14: Please see Response No. 1

Question No. 15: C.1, C2.1.3, C2.4.1 Reserved. What does it mean? Please provide some more explanations.

Response No. 15: “Reserved” is a way for the U.S. Government to remove benefits that aren’t covered in this contract while maintaining the numbering conventions of the standard contract template. In other words, don’t worry about it.

Question No. 16: Dismemberment- does it stands only for dismemberment that results in Total and Permanent Disability? What about Partial Permanent Disability?

Malign breast tumor (carcinoma, etc)

Benign uterus Tumors (adenoma, fibroma)

Malign breast tumor (carcinoma, etc.)

Other Benign Tumor

Other Malign Tumor

Chronic hepatitis (B, C etc.)

Diseases of stomach, liver, intestinal and rectal (for example: gastritis, ulcer, Liver hemangioma, Liver cysts, Chrohn disease, colitis, diverticulosis, hemorrhoids, etc.)

Lung diseases (for example:

tuberculosis, pneumonia, thromboembolic disease, pulmonary infarct, etc.)

Skin diseases (melanoma, atypical nevus, psoriasis, scleroderma, etc.)

Depression or other mental diseases

Rheumatoid Arthritis

Osteoporosis, Disc Hernia, Spondylarthrosis, Arthrosis.

Renal Diseases (stone, renal cysts

Infections, insufficiency, etc.)

AIDS/HIV

Any other diagnosis.

Response No. 16: Please see Response No. 10.

Question No. 17: Further to the above question, should the Insurer create a list of coverages and the respective percentages of benefits in case that the dismemberment results in Partial

Permanent Disability?

Response No. 17: Please see Response No. 10. In addition, per C.2.1.2 “The employee's estate or employee will receive an amount equal to two times the amount of the annual basic salary in the event the employee is killed in an accident, or a work-related death/disability.”

Question No. 18: The Estimated payroll is expressed bi-weekly in thousands USD. According to this the annual payroll for the base Year is 200,344 USD *1000*26= 5,208,944,000 USD. Is it correct? In B.6, The currency of premium shall be expressed in ALL. Could you please confirm whether the currency of the estimated payroll / sum insured per individual should be in USD or

ALL?

Response No. 18:

a. The amount is incorrect at the B.6 table. The amount in thousands for the first year should be $200.34 (not $200,344).

b. The currency to be used for the reimbursement for insured individuals should be in ALL.

c. An amendment will be issued to reflect the correct amounts.

Question No. 19: You have specified that the sum insured is 2 times Annual salary. Does it mean that the overall sum insured is 2 times estimated payroll?

Response No. 19: Per C.2.1.1, “The employee's estate or employee will receive an amount equal to two times the amount of the annual basic salary in the event the employee dies of a natural death. The U.S. Government does not cover funeral benefits.”

Question No. 20: May you provide the minimum and maximum annual salary in order to correctly design the underwriting process?

Response No. 20: Please see Response No. 2.

Question No. 21: May you provide the respective percentage of the genders in respect to the correct premium calculation?

Response No. 21: Regarding the Embassy’s LE Staff, 26% are female and 74% are male.

Question No. 22: During the last 5 years what is the number of employees that lost their life as a result of natural death (sickness)? Please indicate basic annual salary of each deceased employee at time of death.

Response No. 22:

1. Two employees died in the last five years due to natural causes.

2. Their annual salaries the at time of death were:

a. 4,003,417 ALL

b. 1,329,724 ALL

Question No. 23: During the last 5 years what is the number of employees that lost their life as a result of accident or work-related accident? Please give details about the cause of accident.

Please indicate basic annual salary of each deceased employee at time of death.

Response No. 23:

The number of employees that lost their life because of accident or work-related accident during the last 5 years is: 0 (zero)

Question No. 24: During the last 5 years what is the number of employees that suffered partial or total permanent disability as a result of work related accident? Please give details about the cause of the accident. Please indicate basic annual salary of each injured employee at time of the accident.

Response No. 24:

The number of employees that suffered partial or total permanent disability because of work-related accident during the last 5 years is: 0 (zero)

Question No. 25: In view of point C2.1.2 and C2.1.3 it is not clear the requested cover for disability.

Point C2.1.2, request:

“The employee's estate or employee will receive an amount equal to two times the amount of the annual basic salary in the event the employee is killed in an accident, or a work-related death/disability.

Point C2.1.3 request:

Partial and total disability coverage is not a covered expense.

Please explain what your cover request for work related disability is, specifying also what kind of disability is requested (total permanent, total temporary, partial permanent, partial temporary) and the level of benefit.

Response No. 25:

Please see the response of question No. 10 for a work-related death/disability.

Temporary disability is not a covered expense.

Question No. 26: What is the definition of “dismemberment”. What benefits are to be offered here? (PAGE 6, point B.5.1).

Response No. 26:

Dismemberment is a kind of disability (a person who lost a leg or arm accidentally).

The benefits are same as for other disabilities. They will receive an amount equal to two times the amount of the annual basic salary.

*Point B.5.1 states:

Official Residence Expense (ORE) Staff and American Employee Recreation Association

(AERA) and Peace Corp Personal Service Contracts (PSC) are included under this contract only as a rider; the Contractor shall bill the Chief of Mission and Deputy Chief of Mission (for ORE Staff), American Employee Recreation Association (AERA) separately, at the rates specified below. See Section G for billing procedures.

Question No. 27: Page 9-10, point B.8.1: “The information shall be provided per type of premium, i.e. per line item”. What does this mean?

Response No. 27: Please refer to RFP Clause B.8.1. as a whole. Line item is the premium that will be offered under Clause B.6.

Question No. 28: Page 20, point G.4.2 “All payments under this contract will be made at the conclusion of the period covered”. The insurance is a pre-paid service, as claims can happen since the first day of insurance. Shouldn’t the quarterly premiums be paid in advance, say within

10 days from the invoice?

Response No. 28: Payment will be done in accordance with clause G.4.2 and Clause H.3.

Question No. 29: In the interest of providing our team with as much data as possible so as to offer our most competitive rates would you be able to inform us on the following:

Minimum required information:

Census (DOB, Gender, Benefit Amount, etc.)

Current Rates

Preferred Information:

Renewal Rates

Salaries

Full Booklet

History w/current carrier including rates

Response No. 29: Please see Responses No. 1 & 2.

Thank you for your interest in this solicitation.

Sincerely, Sally B. Lewis